Thursday, February 20, 2014

Scottish independence: Scotland’s ‘jolly fat man’ Alex Salmond’s stupid remark on default on UK debt comes back to haunt him and the SNP, homeowners would face paying £5,200 extra on their mortgage, George Laird right again, real lack of talent in the Scottish National Party

Dear All

You must be now absolutely sick of being lied to by the SNP leadership of Alex Salmond and his unpopular Deputy Nicola Sturgeon.

In politics, there are times when politicians get it wrong, no one is perfect, it happens, however when getting it wrong turns into outright deception repeatedly, it is time to fold your tents.

So, before I continue, here is something at Nicola Sturgeon said December 2007.

Nicola Sturgeon:

"It is the clear view of the Scottish National Party and the Government that Scotland would automatically be a member of the European Union upon independence.  There is legal opinion to back that up. I don't think the legal opinion is in any doubt".

Irene Oldfather:

"The minister said that Scotland would automatically be a member of the European Union?"

Nicola Sturgeon:

"Indeed I did".

Irene Oldfather:

"You would not require to renegotiate?"

Nicola Sturgeon:


We know now that the supposed 'legal advice' never existed heralded by Alex Salmond never existed and the SNP was prepared to use taxpayers' money to defend this information reaching the public.

Trust is still important in politics.

And add to that preparation as well, there has been no prep for independence, the SNP didn't do the required work needed in Government and local government reform. Too late now to start, the bid was all based on populism, but Alex Salmond and Nicola Sturgeon aren't that popular as they would have you believe.

Alex Salmond recently came out and said if the Westminster Government didn't agree a currency union than they would renege of Scotland's share of the UK national debt.

It was a threat.

A stupid petty mindless threat which has blown up in the face of the SNP now, another ‘strategic move’ which wasn’t strategic and executed by buffoons.

Sterling is not an asset that Scotland is entitled to if it was ever to become independent.

It is a UK currency.

After the SNP committed to this stupid remark, the ripples of it are coming back now to haunt them.

Homeowners in Scotland could face average annual mortgage increases of almost £5,200 under independence.

This transpires if the Scottish Government walks away from its share of national debt'

Alex Salmond and unpopular Nicola Sturgeon just put the homes of every Scots in jeopardy at some stage if they won, but they won't win. Scots have turned against them, business has turned against them and they have few allies to count on.

So, when Chief Secretary to the Treasury Danny Alexander said any threats by Scotland's First Minister Alex Salmond to refuse to take a share of the debt as a result of the UK Government's rejection of a currency union could have a "huge effect on mortgages and businesses".

He has had someone do the number crunching.

Conservative Chancellor George Osborne has already stated that if a new Scottish state accepted its share of UK debt, it would still have to pay an ''independence premium'' to borrow from the markets.

This would mean an extra £1,700 a year for the average mortgage-payer.

You might have read my continual assertion on the importance of reforms to government, as being essential.

Somewhere down the line cash liquidity would be needed to ensure that a carry over period didn't leave Scotland vulnerable.

Salmond didn't bother to do the work; it was enough that a daft smile and a 'jolly fat man' routine would win the day in his eyes.

Stuffed now!

Alexander told a Holyrood committee:

"In the event of a default, of a refusal to accept debt, one bank, Jeffries investment bank, has done the only detailed estimate out there - they have suggested that under those circumstances there would be a premium of more like five percentage points in that default scenario."

Alexander added:

"If you run that through the calculator in terms of how that gets passed on to the real economy... it would have a huge effect on mortgages and businesses. Assuming a 75% pass through from bond rates to mortgage rates would be an extra cost of about £5,200 on an average mortgage cost in Scotland. None of these things are certain, but you see the range of financial risks that come with borrowing under an independence framework."

Alexander also said:

"The idea that you would start your life as a new nation state like that would be cutting off your nose to spite your face. The expectation within the markets is that part of the proper process of independence is taking on a fair share of the debt, and in the end market credibility and confidence is based on the perception that a country is willing to take on its financial obligations."

In layman terms, you opine that adds up to ‘fucked all roads’!

Unpopular Deputy First Minister Nicola Sturgeon later dismissed Alexander's claims that mortgage costs would rise in an independent Scotland.

She told the committee there was "not a scrap of evidence that would be the case".

You will think that someone who exercises such poor judgment would first check that out before trotting it before anyone and his brother.

Sturgeon added:

"There are examples of other small European countries that have lower mortgage costs than people in Scotland as part of the UK right now."

Are they part of the UK?

No, so this is not applicable to this scenario, and they didn't threaten to fuck over anyone over debt repayment.

Scottish Finance Secretary John Swinney whose reputation has been effectively trashed by the incompetence of the independence campaign said independence White Paper had set out for UK debt to be shared if there is a Yes vote in the referendum.

He added:

"Under the proposition we have put forward, an independent Scotland would be quite happy to pay, as part of negotiated arrangements which would include participation in a sterling zone."

A Sterling zone is going to happen, that is certain now, all the three main parties are committed to a unity pact to refuse Scotland a currency union.

Swinney told MSPs:

"If the UK Government wishes to have its cake, it cannot eat it as well."

He added:

"If one's position is to take all of the assets, one's position must be to take all of the liabilities."

Sterling isn't an asset; this has been explained to the SNP.

Finally, his parting shot:

"The Treasury has accepted all the debt will be legally theirs because of Westminster's argument that the rest of the UK will be the continuing state - so by definition it is impossible to default on a debt that is not legally yours."

Westminster had to guarantee the debt because of Salmond's stupidity, somewhere down the line post defeat, he will seriously regret being so gobby, because he used up goodwill without thinking matters to their logical conclusion.

And that could have a knock on effect of any additional powers as well to Holyrood.

Yours sincerely

George Laird
The Campaign for Human Rights at Glasgow University


Anonymous said...

Scotland offers nothing new to the EU. All those resoures the SNP bang on about are already shared by the UK with Europe.
When did Westminster claim all the assets? Up to now they have refused to share a currency, which isn't an asset.
Fact is I'm now convinced, wholeheartedly, that the SNP are incapable of running an Independent coumntry. Up to now it's been all about bribes for votes and soundbites.
Sad thing is, they don't realise that is what they're doing.

Anonymous said...

never vote SNP and never will again George, they are a disgrace

Anonymous said...

really shame indy campaign is just a loser

Steakbake4indy said...

irresponsible statement that shows that SNP isn't interested in independence, I suspect like others they actually want to lose.